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Fraser Co. is considering a change to its cost structue. Below is the data relating to the current structure as well as the proposed structure.

Fraser Co. is considering a change to its cost structue. Below is the data relating to the current structure as well as the proposed structure. NEED BOTTOM PART SOLVED PLEASE image text in transcribed

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L 1 Fraser Co. Iscondidering a change to its cost structure. Below is the data relating to the current structure as well as the proposed change Current Structure Proposed Structure Unit Sales 20,000 Unit Sales 4 Sales PricePerUnit 20,000 $ 100 Sales PricePerUnit 5 100 5 Total Variable costs and on 20.000 unit) $ 400,000 Total Viable costs on 20,000 6 Total Fixed Costs $ 700,000 $ 900.000 Total Fixed Costs $ 600,000 7 1.) Prepare a CVP Statement for each cost structure. Incorporate cell references and formulas where indicated. You can instantly create the CVP Statement for the 8 Proposed Structure, by copying and pasting your completed CVP Statement for the Current Structure. Make sure all highlighted areas are completed. Try to avoid the 9 headings when copying. You want to keep the Proposed Structure heading 10 CVP Statement Current Structure CVP Statement Proposed Structure 11 12 Total Per Unit Xof Sales Total 13 Sales Per Unit Xof Sales $ 2,000,000 $ 100.00 100N Sales $ 2,000,000 $ 14 Vwlable Costs 100.00 100% $ 400,000 $ 20.00 20N Variable costs $ 700.000 35.00 35% 15 Contribution Margin $ 1,600,000 $ 30.00 BOX Contribution Marin $ 1,300,000 65.00 65% 16 Fixed Costs 900,000 Fixed Costs $ 600,000 17 Net income 700,000 Net Income $ 700,000 18 JUe the Contribution Margin technique to calculate the releven point in units and dollars for each scenario. You can save time again by copying from one 19 section to the next. Be careful with the headings 20 Breakeven Units. Current Structure Breeven Units Propeud Structure 21 223 900,000 $ 600,000 235 11,250 R0.00 65.00 9,231 24 25 Breakeven Sales Dollars Current Structure Breakeven Salds Dollars Current Structure 20 22 900,000 600.000 28 5 1,125,000 5 $ 923,077 1 29 30 Original Revisions + Rau X 3 43 a 4.) Compute the Degree of Operating Leverapa for both scenarios Sovetime again, Depee of Operating Leverage - Current Structure Degree of Operating leverage.Proposed Structure 1.600.000 2.285714286 $ 1.300.000 700.000 5 1.857142857 700,000 SjUw the Degree of Operating Leverage to determine how a los increase in 4 sales will impact Net Income 45 45 Current Proposal 47 Dre of Operating lever 2.285714286 1857142857 LABEL derece eleme 49 Net income Impact Formula formula 30 Old Net Income 200.000 200.000 51 LABEL formu 5. New Noticon form 51 54 6. Sower and print doce-to-face che DA JC YAOWS 107 of the reader tab (ORIGINAL"to the won Se the vision predirect to prove your calculation from intructions of the original redef by increasing the volume in the detection prey 59 shadedre) by 10. member to change anything else in the detection which would be by change in males volumnou should not make any change 60 blow rowe ma

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